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The Spectacle Blog
Following my CFIF column yesterday on some problems with Herman Cain’s 9-9-9 plan, here’s some more scoop about how it was scored, what the official scorer thinks of it, and other interesting matters and other thoughts of mine.
View all comments (18) | Leave a comment
More Blog Posts by Quin Hillyer
http://spectator.org/blog/2011/10/13/scoring-9-9-9-and-other-though
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SemperUbiSubUbi| 10.13.11 @ 4:50PM
Currently 47% of Americans pay no taxes.
Cain's plan fixes this. First, they would pay 9% income tax right off the top of their wages. Second, those 47% tend to spend everything they make with little left for savings and investments, so the 9% sales tax gets right in there. Third, the corporate tax rate of 9% is obviously going to be passed on to consumers in the form of higher prices so it's just a way of goosing the sales tax rate up to 18% while making it look like 9%.
The net effect? Boom. They go from paying zero tax to paying 27%, although to be fair they'll only realize that they're paying 18%. The income tax hits them on every paycheck and the sales tax reminds them on every purchase.
There is NO better way to get the 47% to understand that all the entitlements they rely on cost money. People criticize the Cain plan because it doesn't balance the budget. Doesn't bring in enough revenue. But look, once the people who are getting all the entitlements start having to pay for them, they'll be very quick to start demanding that the government stop wasting their money. That won't happen as long as they can get other people's money instead.
Occam's Tool| 10.13.11 @ 6:56PM
The current corporate tax rate is 35%, so a drop down to 9 would NOT increase the individual true tax rate. Hello.
Wayne| 10.14.11 @ 7:03AM
How many of these 47 percent are retired and live off of social security? Is it really your goal to make them pay sales taxes?
Rob| 10.13.11 @ 5:11PM
Dr. Art Laffer estimates that the 9-9-9 plan would lead to a surge in economic growth, according to Human Events. Congress could address the concern that passage of the 9-9-9 plan would open the door to a possible tax increase by sending to the states a constitutional amendment that would not only balance the budget but limit new taxes. It could even make the start date of the 9-9-9 plan conditional upon ratification of such an amendment. If it were modified per AmSpec's Green Lantern's suggestion that the 9% sales tax be modified to be a 9% carbon tax, then it would not impose collection requirements on state and/or local governments in a bind, nor would it lead to an underground economy or a black market, and thereby provide a venue for further lawlessness.
aware| 10.14.11 @ 6:15AM
Why on earth would anybody listen to Laffer? He has been wrong on economic issues so often he could be nominated for Federal Reserve Chairman. The Left has its Krugman and the Right has its Laffer, both are economic snake oil salesmen.
Clint| 10.13.11 @ 5:16PM
Cain's9-9-9 i s A Non-Starter orchestrated by Cain's FED Buddy & TARP recipient Wells Fargo Division dude, Rich Lowrie.
No way are Conservatives gonna allow Big Government to have A National Sales Tax & An Income Tax.
Who did Cain think he could Shuck & Jive This Non-Starter past.
The Tea Party Rebellion Is Here.
Romney/Cain 2012| 10.13.11 @ 6:45PM
For a non-starter it sure is getting a lot of attention, and provoking a lot of good discussion about tax reform!
It's a sales tax and an income tax BUT with payroll taxes and other taxes eliminated. A sales tax is a visible way of making sure everyone has some skin in the game and therefore cares about cutting spending.
Clint| 10.13.11 @ 7:04PM
So does a train wreck.
Like The Fiscal Times says, 9-9-Nein !
Margie| 10.13.11 @ 7:03PM
What's a non-starter is a Ron Paul porkulous spending Presidency.
4% and falling!
Clint| 10.13.11 @ 7:06PM
A new national poll puts Ron Paul in third place just shortly behind Herman Cain in the race for President in 2012.
In the Reuters article , it was admitted that Romney, though leading the pack of Republican rivals, is certainly not a “strong” front-runner considering the less than enormous gap existing between candidates.
Romney, 23%. Cain, 19%. Paul, 13%.
The Tea Party Rebellion Is Here.
Trinacria| 10.13.11 @ 7:21PM
So the third place candidate gets the nomination? Shit!
Paul/Larouche 2012| 10.13.11 @ 7:57PM
Get used to it Trinacria. Romney is sinking, Perry is sunk, Cain is rising and ahead of Romney in some polls but will fall soon because of the 999 plan, and Newt is rising too but he's already past Perry in some polls and if he passes Romney and Cain as they fall then it's only a matter of time until he falls too, and then Bachmann might have a second bounce and Perry could come back a bit but probably not much.
And after voters tire of Romney and Cain and Perry and Newt, and then give them all a second look and then tire of them again, who are they going to turn to?
Ron Paul, that's who.
I, For One, Welcome Our New Reality Impaired Overlords.
Margie| 10.14.11 @ 3:37AM
LaRouche! UGHHHH.
Look him up, folks.
WEIRD.
Rob| 10.13.11 @ 5:39PM
Any political objection with regard to a 9% income tax meaning a tax increase for some individuals could be addressed by permitting individuals to file under either the present tax code or under a new tax code of 9%, should they so choose (at least for a limited transitional period of time).
Brian B| 10.14.11 @ 11:26AM
I'm not sure I understand this overriding fear of 9-9-9's susceptibility to being raised.
Since it does not contain a hidden VAT, is it somehow more susceptible to being raised than the current myriad and incomprehensible tax code we have now?
Would a standard flat tax not be subject to the same risks?
Since the top income tax rate was 70% only 30 years ago the argument seems kind of bizarre to me.
Oldefarte| 10.14.11 @ 11:34AM
Cain has the guts to tell the truth, but as Quin demonstrates, this 9 plan con't work now. Again the nation's economic/financial problem is the current administration and government spending [not revenue]. The next president and congress needs to seriously begin cutting this spending/waste as a priority, eliminating governmental departments/agencies where necessary [and their funding]. Once done, and with the business community aware that this current socialist regime is no longer in place to over-regulate, tax, harrass, etc them; then businesses will begin spending on plant/equipment/employees, employees/consumers will have money to purchase goods/services, invest/save etc and the nation's economy will begin growing again. Correspondingly, the next Republican administration/congress needs to seriously look into [if legally possible] outlawing/disenfranchising labor unions [which are the cause of domestic manufacturers outsourcing their production overseas] and therefore eventually re-installing our domestic manufacturing base [which will result in increased jobs, salaries and consumer purchases therefore increasing the economy]. The sole reason why China has taken over the manufacturing of products that we buy is due to their lower wage rates, and the labor unions' excessive wage scales has caused this detrimentally to our country [also as Trump rightfully indicates, Chinese goods should be taxed/surcharged etc to force their compliance in de-coupling their yuan from our dollar]. Cain's 9 plan is not needed initially and he instead should be focused upon calling out the laziness of minorities, the worthless/unproductive protestors, etc. His ideas are refreshingly needed, but his 9 plan needs to be shelved for now!!!!!!
Dai Alanye | 10.15.11 @ 3:14AM
Can't anyone imagine what a Federal sales tax will do to the internet? Everything will cost 16% more, because with the Feds getting theirs the states won't be far behind. And it's not just Amazon and Overstock that will be affected. Individual sales on eBay and Craigslist will be taxed. Further, think of IRS going after garage sales and spaghetti suppers, because you know the big government types will want to plug all "loopholes." Johnnie and Suzie's lemonade stand is already under scrutiny by cities---wait till the Feds get on their backs.
I predict a big increase in barter, followed by Federal regulations attempting to outlaw it. Much as we'd like to rein-in the income tax, Cain's proposal is a fiasco in the making.
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